Project ID: 979

China Eximbank provides $233 million preferential buyer’s credit for South Kordofan 220kV Power Transmission and Distribution Project (Linked to Project #1007 and #57039)

Commitment amount

$ 324505376.040524

Adjusted commitment amount

$ 324505376.04

Constant 2021 USD


Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]




Energy (Code: 230)

Flow type


Level of public liability

Central government debt

Financial distress






Mixed (The next section lists the possible statuses.)





Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle


Implementation (The next section lists the possible statuses.)











On July 29, 2008, China Eximbank and the Government of Sudan signed a $3 billion oil-backed master framework agreement (or line of credit) to finance various infrastructure projects (see Umbrella Project ID#57039). This resources-credit cooperation package is backed by future revenues from the sale of oil exports. Each subsidiary buyer’s credit loan (BCL) issued through the framework agreement carries a 15-year maturity and 5.6% interest rate. On April 4, 2010, China Eximbank reportedly agreed in principle to finance a $274 million South Kordofan 220kV Power Transmission and Distribution Project through this non-concessional master framework agreement. However, on October 8, 2010, China Eximbank and the Government of Sudan signed a $233 million preferential buyer’s credit (PBC) agreement for this project, which carried a different set of concessional borrowing terms: a 15-year maturity and 3% interest rate. The proceeds from this PBC were used to be used by the borrower to partially finance a $274 million commercial contract between China National Machinery Import and Export Corporation (CMC) and the National Electricity Corporation (NEC) of Sudan, which was signed on July 4, 2009. The project involved the construction of an electricity transmission line than runs from the city of El-Obeid (in central Sudan within North Kordofan State) to a power plant in Al-Fulah (or al-Fula or EI Fula or الفولة) in West Kordofan State. The 405 MW Al-Fulah Gas-Fired Power Plant Construction Project was funded through a separate China Eximbank BCL (as captured via Project ID#1007). The ultimate goal was to supply power to Northern and Southern Kordofan and the western region of Darfur. This project did reach the implementation phase, but it is unclear whether or when the project was completed. There are some indications that the China Eximbank loan issued for the South Kordofan 220kV Power Transmission and Distribution Project may have underperformed vis-a-vis lender expectations. According to Sudan’s Finance Minister Ali Mahmood Abdel-Rasool, China Eximbank suspended its financing for 11 projects in Sudan following the secession of South Sudan in July 2011, which triggered a major loss of oil revenue (a key source of collateral for China Eximbank loans). Ali Mahmood Abdel-Rasool said at the time that the Government of Sudan had previously pledged oil revenues (worth 120,000 barrels per day) to China Eximbank as a source of collateral. Then, on February 18, 2012, the Chinese Government announced that it had agreed to reschedule the outstanding debt obligations of the Government of Sudan by extending loan repayment periods by 5 years (as captured via Project ID#30421). According to the External Debt Unit of the Central Bank of Sudan, the Government of Sudan's total arrears to Chinese creditors amounted to $3.864 billion ($2.608 billion in principal, $1.129 billion in interest, and $127 million in penalty interest) as of March 31, 2022.

Additional details

1. This project is also known as the Al-Fula Electricity Network Project. The Chinese project title is 南科尔多凡输变电项目 or 苏丹南科尔多凡输变电项目 (See: 中苏签订南科尔多凡输变电项目贷款协议). The Arabic project title is مشروع جنوب كردفان or لتمويل مشروعتوزيع ونقل الطاقة بجنوب كردفان. 2. National Electricity Corporation (NEC) of Sudan is a state-owned power utility.

Number of official sources


Number of total sources


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Direct receiving agencies [Type]

Government of Sudan [Government Agency]

Implementing agencies [Type]

China National Machinery and Equipment Import & Export Corporation [State-owned Company]

Sudan National Electricity Corporation (NEC Sudan) [State-owned Company]


Future revenues from oil export receipts (worth 120,000 barrels per day)

Loan Details


15 years

Interest rate


Grant element (OECD Grant-Equiv)


Bilateral loan

Export buyer's credit

Investment project loan

Preferential Buyer's Credit